Why Responsible Property Managers Invest in Capital Improvements

Paul Salib received his master’s in real estate finance and investment from New York University (NYU). He holds an assistant adjunct professorial position at the New York University School of Professional Studies Schack Institute of Real Estate. Concurrently, Paul Salib serves as the managing partner of Castellan Real Estate Partners, a New York-based real estate investment firm he founded in 2009. With Mr. Salib at the helm, Castellan practices responsible property management. 

The first rule of responsible property management Castellon follows is to put tenant needs first. Acting responsibly as a property manager involves investing considerable capital into property-wide renovations and enhancements. Examples of capital improvements include new windows, boiler replacements, natural gas conversions, modern intercom systems, closed-circuit television (CCTV), and any other physical building upgrades that will improve the tenant's experience and increase a property's value and/or usability. 

Capital investments such as these often require significant outlays, but their effects eventually return to the business’ bottom line over time. Well maintained buildings ultimately require less money spent on maintenance, and are much more likely to appreciate in value in a rising real estate market.

Treating Tenants Well - Castellan Real Estate Partners

A managing principal at New York City-based Castellan Real Estate Partners, Paul Salib leads in acquiring and managing the real estate assets under Castellan’s portfolio. As a long-term owner of commercial properties, Paul Salib’s firm invests a significant amount of capital in fixed-asset-related outlays, in close alignment with its philosophy of treating its tenants in a responsive, honest, and respectful manner. 

Adept at seeing the long-term value and potential of a property, many of the buildings acquired by Castellan have been poorly maintained and neglected. This has often led to strained relationships between the previous owner and the tenants. Upon acquisition, Castellan invests the capital required to bring the building up to standard, including replacing boilers, updating fire alarm and security systems, fixing leaking roofs, and installing child safety guards on windows. 

The firm also maintains active and open dialogues with its tenants, which helps Castellan address maintenance issues and significantly reduce the number of building code violations. Well-treated residents are more content and tend to pay their rent in a timely manner, a situation beneficial to both parties.

Upgrades That Increase the Value of Older Buildings

Paul Salib is a respected presence in the New York commercial and residential real estate sphere. Heading Castellan Real Estate Partners, he seeks out value-driven acquisitions. Paul Salib has opportunistically sold several properties over the past year that doubled and tripled the price of the original acquisition.

One aspect of the Castellan Real Estate Partners commitment to responsible property management involves addressing issues of physical deterioration under past owners. Enhancements undertaken begin with measures that encompass energy-efficient lighting and refrigerators, as well as doors with weather-stripping and dual-pane glass windows that improve insulation.

In addition, old boilers are replaced, and new units are converted to work with natural gas, which saves on costs and provides more reliable heat. Roofs are replaced as needed and insulation installed that prevents water incursion and traps heat during the colder months. Video cameras and advanced intercom systems enhance security and safety, as do features such as smoke detectors and child guards on windows.